Consideration and Approval of the Section 8 Housing Choice Voucher Program:  Payment standards to exceed 110% of the Section 8 Fair Market Rents (FMR) and authorization to submit the request to HUD for final approval.

The U.S. Dept. of Housing and Urban Development (HUD) published the annual Section 8 Fair Market Rents (FMRs), including utilities, to be effective October 1, 2013. The FMRs are not representative of the actual rents in Flagstaff. Implementation of the payment standards equal to the FMRs will have an adverse affect on the number of families that can be assisted, and for those alreadly being assisted, because their portion of the rent will increase and cause an undue financial hardship. Federal regulations allow housing authorities to establish a rental payment standard up to 120% of the FMRs with HUD approval. This allows housing assistance payments to be made that are more comparable to the actual rents in the community. To be representative of the FMRs the payment standards need to be increased as follows:

0 bedroom FMR  $   702 x 120% = $   842 Payment Standard (including utilities)
1 bedroom FMR  $   816 x 120% = $   979 Payment Standard (including utilities)
2 bedroom FMR  $1,021 x 115% = $1,174 Payment Standard (including utilities)
3 bedroom FMR  $1,296 x 115% = $1,490 Payment Standard (including utilities)
4 bedroom FMR  $1,651 x 115% = $1,899 Payment Standard (including utilities)

Section 8 Housing Choice Voucher Housing Assistance Payments (HAP) in the amount of $3,108,664 are included in the FY2014 City Budget. There will be no financial impact as total HAP payments for the year cannot exceed the budgeted amount approved by HUD.

11. Effective governance

No

A) Approve the payment standard adjustments and authorize the submission to HUD for final approval.
B) Not approve the adjustments which would limit the number of families that the CFHA will be able to assist.

HUD provides Section 8 Housing Assistance Payments (HAP) funding to the CFHA to house 333 low income families in rental housing throughout Flagstaff. Section 8 Fair Market Rents (rent including utilities) are published annually by HUD and are to be used to determine the HAP to landlords. The FMRs are supposed to be somewhat comparable to the local market rents. Federal regulations allow housing authorities to exceed the FMRs up to 120% with HUD approval if it is determined that an increase is necessary for a family to find decent housing.

Ordinance 2010-19 requires the City of Flagstaff Housing Authority Board of Commissioners to recommend to the City Council action to approve Section 8 Housing Choice Voucher payment standards if such payment standards are between 110% and 120% of the Fair Market Rent. The CFHA Board of Commissioners voted at a regular meeting on September 18, 2013 to request the City Council to approve The Section 8 Housing Choice Voucher Program payment standards to exceed 110% of the FMRs and authorize submission of the request to the Phoenix HUD office for final approval.

There are no legal implications. There are no opportunities for larger benefits as a result of this action.

None

The benefit to the community will prevent financial hardship for families, increase the number of voucher holders who become participants upon lease-up, and will allow housing assistance payments to be made to landlords that are more comparable to the actual rents in the community.

Inform

The need for the payment standard adjustment has been discussed with staff from the Phoenix HUD office and at the regular meeting of the CFH Board of Commissioners on September 18, 2013. Commissioners voted to refer the request for an adjustment of the payment standards to exceed 110% of the Section 8 FMRs to the City Council for approval and authorization to submit the request to HUD for final approval.

There are no Expanded Options and Alternatives.